Text 11.2. The role of information technologies

IN THE IMPLEMENTATION

OF A MODERN CUSTOMS POLICY

Customs administrations today face a variety of political and administrative pressures and challenges. These include fluctuating workloads with static or declining resources, greater business expectations, and continuing pressures to meet government revenue, trade facilitation, social protection, and national security objectives. Moreover, Customs administrations are increasingly required to integrate their systems and procedures with the sophisticated global logistics networks used by international trade and transport operators. To cope

with these pressures and challenges, the international Customs community looks to the applied use of information technologies (IT) as a means of improving organizational and operational efficiency and effectiveness. Customs Services in different countries today use varying degrees of automation to support core Customs functions such as goods declaration processing, revenue assessment, revenue collection, risk management, and management reporting.

The basic features of information technologies are the following:

• EDI release transmission;

• flexible service options for doing business;

• new ways to manage Customs' workload between offices across the country;

• automated decision support on the release of goods; and

• capability of identifying high-risk shipments .

Customs Services all over the world use a computerized imagery system for capturing photographic data in an electronic format which can then be viewed at other locations in the computer network. Imagery is used to build photographic databases of contraband concealment methods, wanted persons, fingerprints, copyrights, trademarks and similar data.

Information and communications technologies can substantially contribute to making Customs operations both more effective and more efficient. Every Customs service must attempt to implement the most advanced ICT appropriate for its particular circumstances.

The Department of Homeland Security (DHS), US Customs and Border Protection(CBP) has developed the Automated Targeting System(ATS). ATS is one of the most advanced targeting systems in the world.

ATS is an intranet-based enforcement and decision support tool that is the cornerstone for all CBP targeting efforts. As a decision support tool ATS compares traveler, cargo, and conveyance information against intelligence and other enforcement data by incorporating risk-based targeting scenarios and assessments. ATS standardizes names, addresses, conveyance names, and similar data so these data elements can be more easily associated with other business data and personal information to form a more complete picture of a traveler, import, or export in context with previous behavior of the parties involved. ATS is compatible with other databases. ATS also collects data from foreign governments. It can automatically download, sort and screen-manifest any entry data. This

targeting system facilitates the flow of low risk cargo and concentrates the focus of inspectional enforcement assets on the cargo with the highest risk.

Canada Border Services Agencyhas developed AcceleratedCommercial Release Operations Support System (ACROSS).

The system uses sophisticated electronic technology to streamline the way goods are imported into Canada. With ACROSS, importers and brokers exchange information electronically with the CBSA thereby eliminating the requirement to present paper release packages, subject to certain limitations.

By reducing the workload involved in the clearance of low-risk shipments, ACROSS enables goods to be released more efficiently and quickly. Importers spend less time dealing with the CBSA, which gives them more time to focus on their businesses.

The use of information technologies is an effective tool for risk management. It enables a more rapid analysis of selectivity criteria than would be possible manually. Automation allows Customs administrations to establish a national database of information on all transactions and movements which can be updated and used for rapid information sharing and identification of changing risk areas. It can also provide a database of all risk profiles which would form the basis for a selectivity module within an automated clearance system.

Automated systems allow Customs administrations to subject declarations to a series of selectivity filters to determine which declarations may require further examination.

The application of information technologies in Customs activity brings certain benefits:

• enhanced Customs control over international consignments

• improved control

• reduced cargo clearance times for the discharge of customs formalities

• closer cooperation with other border control agencies

• uniform application of Customs and other border-related legislation

• increased transparency and predictability for the business sector

• more efficient revenue collection and accounting

• more accurate and timely trade statistics

• more accurate information for risk management and post-clearance audit purposes.

These benefits are further enhanced when it is decided to leverage the key role that a Сustoms administration plays in the entire international trade cycle, to create an electronically connected trade community wherein all stakeholders are members.

EXERCISES

I. Match the words from the text with their corresponding definitions.

1. sophisticated a. adaptable; easily changed to suit new

conditions

2. imagery b. objective; something to be aimed at

3. concealment c. highly complex or characterized by advanced

technique

4. target d. descriptions, figurative language

5. flexible e. act of hiding something, or keeping secret

II. Fill in the gaps to make the sentences complete.

Reference words: entry data, core, speed, photographic, computer network, contribute, information, computerized imagery system, operations, facilitates, low risk cargo, automatically, automation, sort, concentrates, the highest risk, transmission of data, electronic, technologies, format.

1. Customs Services in different countries today use varying degrees of … to support … Customs functions.

2. Customs Services all over the world use a … for capturing … data in an … … which can then be viewed at other locations in the …

3. … and communications … can substantially … to making Customs … both more effective and more efficient.

4. It can … download, … and screen-manifest any ... This targeting system … the flow of … and … the focus of inspectional enforcement assets on the cargo with ...

5. The system is designed to … the release of shipments by allowing electronic … to and from Canada Customs 24 hours a day, 7 days a week.

FOLLOW-UP ACTIVITIES I. Punctuate the following text.

Information technologies have already automated such procedures as goods declaration processing accounting and statistics the main objective of information technologies is to manage information within the Customs system in order to improve the efficiency of Customs clearance and control create favorable conditions for all participants of foreign economic activity customs control is in fact the main function of Customs administrations and much attention is paid to evaluation of its effectiveness it is obviously not possible to examine meticulously every consignment that enters a country in carrying out their control function therefore Customs must be selective the application of selectivity criteria in order to identify consignments for examination and documents for checking can of course take place in a manual system where however the functions of cargo control and/or Goods declaration processing have been automated such selectivity can be carried out on a much more informed and thorough basis intelligence gathered by Customs on a nationwide basis can be fed into the computer system and be taken into account when selectivity processing is taking place the probability of uncovering fraudulent practices is therefore increased in an automated environment in the field of valuation fraud computers can also be of assistance in identifying importations when the declared value of products falls outside predetermined parameters the principle of selectivity is the basic feature of risk management system which Customs control is based on risk management is an application of management procedures and practices which provide Customs with necessary information to detect movements or consignments that present a risk.

II. Translate the following word combinations into Russian.

1. Customs mainframe database	6. goods declaration processing
2. data transmission	7. enforcement assets
3. computer network	8. low-risk cargo
4. contraband concealment	9. high-risk shipments
methods
5. stand-alone computer system

III. Speculate about the following.

1. Computer technologies are used by Customs administrations to support a wide range of Customs operations such as inventory control, accounting for goods, goods declaration processing, accounting for revenue, warehousing, enforcement, etc.

2. Because of the decreasing hardware costs and the opportunities afforded by the merging of data processing and telecommunications technologies, computer techniques will be used on an even wider scale in international trade in the future to facilitate the movement of goods.

3. Customs authorities investigate the feasibility of using ADP (automated data processing) technologies to support Customs operations and introduce computerized systems where feasible, cost- effective and otherwise appropriate.

4. Customs authorities may obtain operational costs from the trading community in recognition of the fact that the benefits of computerization accrue not only to Customs but also to other participants in trade.

5. Customs authorities should review and where appropriate modernize existing manual procedures, documentation and coding practices prior to introducing the use of ADP technologies.

6. The adoption of international standards for the representation of data elements, codes and coding structures, and interface protocols greatly facilitates data exchange between Customs administrations and international trade participants whenever there is a need for such data interchange.

7. ADP technologies are used in such areas as:

accounting for revenue accounting for goods

inventory control

goods declaration processing enforcement

production of statistics

DO IT FOR FUN

I. Read the definitions. Supply the missing letters to each word.

1. a device that captures images	s _ a _ _ e _
from photographic prints, posters,
magazine pages, and similar sources
for computer editing and display.
2. entrance by force or without	i _ t _ u _ _ _ n
permission or welcome.
3. the quality of being close together	d _ _ s	y
and difficult to go or see through.

II. Find the following hidden words in the word search.

INTRUSIVE NONINVASIVE

SCANNERS DENSITY

GAMMA DOWNLOAD

IMAGERY SELECTIVITY

UNIT 12. RISK MANAGEMENT IN CUSTOMS

Study the following words and word combinations from the text.

streamline	рационализировать
condense	конденсироваться
to scrutinize	изучать, тщательно исследовать
compliant	соответствующий требованиям
to expedite [ˈekspɪdaɪt]	ускорять
; облегчать, упрощать

TEXT 12.1. CUSTOMS CONTROL

Customs administrations need to maintain the appropriate balance between facilitating legitimate trade and travel while ensuring compliance with the laws and regulations they enforce and to demonstrate that these laws and regulations are applied fairly, efficiently and effectively.

To ensure that Customs can appropriately apply these laws and regulations, all international movements have to be declared for Customs control. Customs administrations have to apply efficient and effective controls by implementing risk management techniques, in order to simultaneously fulfill the responsibility to collect revenue, implement trade policy, safeguard the public, manage the increase in world trade and tourism, reduce Customs personnel, and offer trade facilitation to legitimate traders, travellers and carriers.

There are many ways of responding to these combined objectives by improved facilitation and control within a set of modern Customs practices.

Customs control is, in fact, the main function of Customs administrations and much attention is paid to evaluation of its effectiveness.

«Customs control» is defined as «measures applied to ensure compliance with the laws and regulation which Customs are responsible for enforcing».¹

One way of linking facilitation with control is by using electronic data interchange. The move towards electronic data interchange will streamline the division of information previously condensed into one comprehensive declaration form.

Control of passengers and their clearance time through Customs can also be much improved by innovative procedures based on electronic advanced passenger information systems.

The principle of Customs control is the proper application of Customs laws and compliance with other legal and regulatory requirements, with maximum facilitation of international trade and travel.

Customs controls should therefore be kept to the minimum necessary to meet the main objectives and should be carried out on a selective basis using risk management techniques to the greatest extent possible.

Application of the principle of Customs control will allow Customs administrations to:

• focus on high-risk areas and therefore ensure more effective use of available resources,

• increase ability to detect offences and non-compliant traders and travelers,

• offer compliant traders and travelers greater facilitation and

• expedite trade and travel.

EXERCISES

I. Find the words/phrases in the text which follow the verbs below.

1. to ensure 6. to collect

2. to enforce 7. to meet

3. to apply 8. to carry out

4. to fulfill 9. to detect

5. to implement 10. to expedite

¹ The Glossary of international Customs terms.

II. Make phrases by matching words from the left with words from the right and translate them.

A

1. legitimate a. basis

2. appropriate b. balance

3. efficient c. procedures

4. innovative d. trade

5. selective e. controls

B

Translate the following sentences using the phrases from the exercise above.

1. Customs administrations need to maintain the … between facilitating legitimate trade and travel and ensuring compliance with the laws and regulations they enforce.

2. Customs Service is responsible for facilitating …

3. In order to cope with the challenges Customs Services face today, they need to apply … to all goods, means of transport and travellers.

4. Customs controls can be improved by … based on risk management techniques.

5. Customs controls should be carried out on a …

III. Answer the following questions.

1. What are Customs administrations responsible for?

2. What is Customs control?

3. How can Customs control be facilitated?

4. What is the principle of Customs control?

5. Why should Customs control be carried out on a selective basis?

6. What benefits can Customs administrations enjoy when applying the principle of Customs control?

Study the following words and word combinations from the text.

to disharge

discernible [dɪˈsɜːnəbl]

extent

integrity

perishable cargo

affixing seals

perforations

feasible

itinerary [aɪˈtɪnərərɪ] to retain the right

to take stock of the goods audit based controls to preclude

assets and liabilities to disclose financial statements disruption

разгружать

заметный, видимый

степень, объем , величина

целостность, цельность

скоропортящийся груз

наложения печатей и пломб перфорациивозможный, осуществимый ма ш ут

сох анять право

инвентаризировать товар

аудиторский контроль

препятствовать, мешать

активы и пассивы

раскрывать

финансовая отчетность

разрыв

TEXT 12.2. CONTROL METHODS

Customs administrations today are required to provide extensive facilitation while maintaining control over the international movement of goods, means of transport and persons.

There are some basic types of control methods. They can be applied to any size of trader from the small irregular importer and exporter to the

multi-national business. They can also be applied irrespective of the value of the duties and taxes in question.¹

Movement controls

These controls are measures applicable to goods and means of transport before or upon arrival, departure or during a Customs procedure, until they are released. Commercial means of transport which stop only for a short time in the Customs territory without discharging or taking on passengers or cargo, are not normally subject to measures other than general supervision.

The selection of goods, means of transport, or documents for examination, should be based on risk profiles to target specific transactions.

If a potential Customs offence is discovered during the movement control, there must be communication and co -ordination with the appropriate enforcement unit to start a formal investigation.

Documentary examination

The information gained from the examination of documents enables verification for compliance purposes and matching against risk profiles. The submission of the documents prior to the arrival/departure of the goods and means of transport allows the pre-selection of the movement for examination. It enables Customs to decide about the release of the goods and means of transport before they actually arrive in the Customs territory. Information presented in the documents when compared to information available to Customs can assist in targeting for special attention.